PUBLIC

Data Science Servicesfor SAP Unified Demand Forecast

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▪ Dedicated team of Retail Data Scientists focused on demand

forecasting and machine learning

▪ Global optimization experience since more than 10 years

▪ Creation and delivery of standardized services

Delivered by SAP Retail Data Science CoE

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▪ UDF Proof of Concept

▪ UD F&R Proof of Value for Replenishment Scenario

▪ UDF Calendar Event Analysis

▪ UDF Product Promotion Analysis

▪ UDF Weather as Demand Influencing Factor

▪ UDF Expert Consulting as Remote Service

Services Overview

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Unified Demand Forecast* Proof of ConceptGet insights into how the Unified Demand Forecast runs with your data and the forecast quality you can achieve.

Your Benefits

▪ Discover the Unified Demand Forecast benefits before implementation

▪ Gain valuable insight into your data quality and readiness

▪ You will receive forecast data at the most granular level for comparisons

and evaluation

▪ Get UDF parameter recommendation for your implementation project

▪ Get a solid basis for the decision process and learn how forecast

capabilities meet your business scenarios

Questions to answer with the Proof of Value

• How effective are my promotions?

• What forecast components drive my forecast most?

• How do my sales differ by channel, historically and in the future?

• How can I forecast first time promotions and seasons for products?

* Unified Demand Forecast is the basis for all consuming applications on SAP Customer Activity Repository. The

forecast quality directly influences the result quality of all consuming applications. Your demand strongly depends

on internal and external influences like promotions, price, seasonality, market trends and calendar events.

.

SAP Retail Data Scientists evaluate the characteristics of your product

Demand Influencing Factors (DIFs) such as promotions and advertising

campaigns. They check and evaluate the effectiveness and stability of

the forecasting model

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UD F&R Proof of Value for Replenishment Scenario

Sequential steps of the analysis

▪ Evaluation of the data quality

▪ Modeling of the influencing factors

▪ Run F&R powered by UDF daily with real historical data for 3-6 months

▪ Analyze and calculate KPIs of the as is situation and different scenarios

▪ Compare KPIs and calculate economical potential

▪ Extrapolate economical potential to the entire company

Simulation period (3-6 months)

(+ daily stock,delivery schedule, spoilage)

Historical data for 2½ years (daily sales data, promotion)

SAP uses your company’s historical data to simulate the ordering behavior of SAP Forecasting and Replenishment powered by Unified Demand Forecast, helping you assess the potential economic benefit of the software before deploying it.

Your Benefits

▪ Well-founded business case as basis for decision

▪ Realistic targets for an implementation success measurement

▪ Insights into the current data quality and readiness

▪ Valuable input for the modelling of your business driver

▪ Insights into the ordering behavior with examples out of our data

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▪ SAP Retail Data Scientists analyze the historical sales of usually

2 locations/stores (maximum 20.000 products per store,one channel).

▪ The experts identify when sales is affected by public holidays

like Christmas and suggest how they should be parametrized in

UDF.

▪ The analysis is carried out on the premises of SAP.

▪ The results are presented and communicated in a remote

meeting. Result is a document which includes a proposal for the

parametrization of calendar events in UDF.

UDF Calendar Event Analysis

Your Benefits

▪ The modeling of location DIFs, like Christmas or Easter is

essential for a high quality forecast

▪ Increased acceptance of the forecasts will support the

change management in your company

▪ Achieve your business targets with a sophisticated forecast

model

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UDF Product Promotion Analysis

SAP Retail Data Scientists evaluate the characteristics of your product Demand

Influencing Factors (DIFs) such as promotions and advertising campaigns.

They check and evaluate the effectiveness and stability of the forecasting

model. This provides you a solid basis in the decision process for customizing

SAP UDF.

Improve the forecast accuracy and robustness with an optimized modelling of your promotion DIFs.

Your Benefits

▪ Get insight in the characteristics of your DIFs from a forecasting point-of-view

▪ Achieve your business target with a robust forecast model

▪ Get access to the experience of our specialized Retail Data Scientists

▪ Get actionable information to optimize DIFs and forecasting model

▪ Gain potential performance improvements with an optimized DIF modelling

Questions to answer with the Product DIF Analysis

• What advertising activities shall be transferred in a DIF?

• Do I have the right number of DIFs and are they defined correctly?

• Are there opportunities for improvement of forecast accuracy and

robustness?

• Are there reasonable DIF grouping possibilities?

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UDF Weather as Demand Influencing Factor

SAP experts determine the relevancy of weather conditions on your business.

This analysis provides insights into the significance of different weather

conditions like temperature, precipitation, sunshine to specific products or

product groups in your assortment.

Further improve the forecast accuracy in UDF by considering Weather

Your Benefits

▪ Discover the potential for your forecast accuracy by considering weather

conditions before implementation

▪ Gain insight what weather conditions drive your forecast most

▪ Gain insight which products or product groups are influenced most by weather

conditions

▪ Further improve your UDF forecast model for weather influenced products

Data Requirements

• Historical weather data like temperature, precipitation and sunshine on

daily base for the target location of the analysis

• UDF input data like parameter settings, sales, price and promotion

information

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UDF Expert Consulting as Remote ServiceBenefit from the knowledge and expertise of our Retail Data Scientists

We support you with …

▪ Case by case analysis

▪ Review of parameter settings and the modelling

▪ Assistance with the activation of new functionality and parameters

▪ Best practices and know how for specific scenarios

▪ Knowledge transfer to your internal UDF team

▪ Latest know how around UDF

Our recommendation and best practice approach

▪ Make it easy for your internal UDF team to access the experts in order to support their

daily work

▪ Agree a yearly budget and establish a connection to the SAP UDF experts

▪ Please contact your SAP Service Account Manager for this pre-configured offer

Are you interested?Please contact us for more information

Wilfried BaumgartnerRetail Data Scientist

SAP (Schweiz) AG

wilfried.baumgartner@sap.com

Joachim SauterConsulting Manager

SAP (Schweiz) AG

j.sauter@sap.com

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